Mindoro Resources Ltd.
TSX VENTURE : MIO
FRANKFURT : OLM

Mindoro Resources Ltd.

August 01, 2006 09:00 ET

Mindoro Resources Ltd.: Additional Positive Drill Results from Kay Tanda and Pulang Lupa

EDMONTON, ALBERTA--(CCNMatthews - Aug. 1, 2006) - Mindoro Resources Ltd. (TSX VENTURE:MIO)(FWB:OLM) today reported additional encouraging gold grades from a further eight drill holes, including 20 meters of 1.09 grams per tonne (g/t) gold and 28 meters of 0.95 g/t gold, from the adjacent Kay Tanda and Pulang Lupa epithermal gold-silver prospects, located in the Archangel Project, the Philippines.

Mindoro is continuing to receive encouraging gold-silver results from an ongoing reverse circulation drilling program, with thick intersections of low-grade, near-surface, oxide gold-silver mineralization. Previous results are reported in releases dated May 3, May 23, June 16, July 4, and July 25, 2006. The drill holes extend the near-surface mineralization significantly beyond the previously known limits. Highlights from the recent drilling at Kay Tanda (KT) and Pulang Lupa (PL) are:

- KT-17: 22 meters of 0.48 g/t gold; extended mineralization 50 meters to the south and east

- KT-18: 14 meters of 0.34 g/t gold and 32 meters of 0.46 g/t gold; an infill hole, confirming mineralization continuity 50 meters from adjacent drill holes

- KT-19: 26 meters of 0.43 g/t gold; extended mineralization 50 meters south and west

- KT-20: 28 meters of 0.95 g/t gold; extended mineralization 50 meters north

- PL-15: 6 meters of 0.46 g/t gold and 22.07 g/t silver and 8 meters of 0.97 g/t gold and 14.29 g/t silver; extended mineralization 50 meters to the north and west

- PL-16: 20 meters of 1.09 g/t gold; an infill hole confirming mineralization continuity 50 meters from adjacent holes

Mindoro's President, Tony Climie, P.Geol, stated, "We are pleased to see grades which continue to be in line with successful open-pit, heap-leach mines elsewhere in the world. We will continue both in-fill drilling, to provide further confidence in internal continuity, and drill outside the presently known mineralized area, where mineralization is open in several directions. Two phases of metallurgical testing on Kay Tanda also indicate excellent leaching characteristics. As a result, we have commenced working on a NI 43-101 resource report. Additional drill sampling for metallurgical testing will commence within a week. This will be followed by a scoping study to commence by this fall to further evaluate Kay Tanda's open-pit, heap-leach potential."

SUMMARY OF DRILL RESULTS: Kay Tanda Holes KT-17 To 21 and Pulang Lupa PL-14 To 16



(Based on economic cut -off grade of 0.3 g/t gold)
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KTRC-17
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9700N : 10100E Direction: 140 degrees Inclination: -70 degrees
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From To Sample Length Au g/t Ag g/t
(m)
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2 12 10 0.37 1.69
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32 54 22 0.48 1.09
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less than
including 44 46 2 1.50 0.5
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78 84 6 0.69 4.13
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KTRC-18
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9750N : 10050E Direction: 140 degrees Inclination: -70
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From To Sample Length Au g/t Ag g/t
(m)
---------------------------------------------------------------------
22 36 14 0.34 4.58
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46 50 4 0.48 4.85
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78 110 32 0.46 3.23
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including 94 96 2 1.33 10.55
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KTRC-19
---------------------------------------------------------------------
9750N : 9850E Direction: 140 degrees Incl: -70
---------------------------------------------------------------------
From To Sample Length Au g/t Ag g/t
(m)
---------------------------------------------------------------------
22 48 26 0.43 0.58
---------------------------------------------------------------------
less than
including 38 40 2 3.04 0.50
---------------------------------------------------------------------
78 80 2 3.10 2.30
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104 106 2 2.97 3.40
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116 118 2 0.38 1.10
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KTRC-20
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9810N : 9755E Vertical
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From To Sample Length Au g/t Ag g/t
(m)
---------------------------------------------------------------------
0 28 28 0.95 1.28
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including 2 4 2 7.21 1.40
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& including 18 20 2 1.88 6.40
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56 58 2 0.46 0.60
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KTRC-21
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9700N : 9800E Direction: 140 degrees Incl: -70 degrees
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No significant intercepts
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PLRC-14
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9570N : 9630E Direction: 140 degrees Inclination: -70 degrees
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No significant intercepts
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PLRC-15
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9500N: 9580E Direction: 140 degrees Inclination: -70 degrees
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From To Sample Length Au g/t Ag g/t
(m)
---------------------------------------------------------------------
14 20 6 0.46 22.07
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36 44 8 0.97 14.29
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including 36 38 2 1.99 36.55
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PLRC-16
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9350N : 9530E Direction: 140 degrees Inclination: -70 degrees
---------------------------------------------------------------------
From To Sample Length Au g/t Ag g/t
(m)
---------------------------------------------------------------------
12 32 20 1.09 N/R
---------------------------------------------------------------------
including 24 32 8 2.10 N/R
---------------------------------------------------------------------

N/R: Not yet received


ABOUT KAY TANDA

Kay Tanda, including the semi-contiguous Pulang Lupa zone, is part of a large zone of epithermal gold-silver mineralization associated with quartz stock-working and hydrothermal breccias in andesitic and dacitic volcanics and intrusives. As drill-defined to date, mineralization extends over a strike length of more than 900 meters and has an average width of approximately 350 meters. Mineralization is open in several directions. A drill-hole location plan, and two cross sections, accompanied the July 4, 2006 news release, and will shortly be updated. Similar mineralization has been located at the Lumbangan and Marita zones to the north-east which are yet to be drill-tested.

Near-surface mineralization is in the form of a quartz stockwork blanket commonly extending right from surface, and averaging in thickness from 30 meters to 40 meters. Grades typically fall within a range of 0.5 to 0.8 g/t gold and 1 to 3 g/t silver. The mineralization is oxide down to a depth of 50 to 70 meters. Below this, the non-oxide mineralization is generally in the form of stockworks or higher grade veins, which attain bonanza grades in places (eg. 70 g/t gold over 1 meter in hole KT-4). At this time, focus of the evaluation is on the near-surface mineralization.

Intense porphyry copper-gold related phyllic (quartz-sericite-pyrite) and SCC (sericite-clay-chlorite) alteration plus abundant quartz veins/veinlets with low-grade copper-lead and zinc mineralization, continues to be encountered in all holes immediately below the overprinting epithermal gold-silver zone. This porphyry prospect constitutes a follow-up target for a future diamond drill program.

Programs are carried out under the supervision of Tony Climie, P.Geol., who is a qualified person as defined by National Instrument 43-101. Normal Quality Control and Quality Assurance procedures are being carried out, using a system of duplicate, standard and blank samples.

ABOUT MINDORO

Mindoro is a Tier 1 Issuer trading on the TSX Venture Exchange (MIO) and the Frankfurt Stock Exchange (OLM). The company has identified 22 porphyry copper-gold prospects and a nickel laterite prospect in the Philippines and has an aggressive strategy of drilling multiple targets in 2006.

This release may contain forward-looking statements including management's assessments of future plans and operations, and expectations of future production. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to, the risks associated with the mining and exploration industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production). The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Mindoro Resources Ltd. - Head Office
    Penny Gould
    Executive Vice President
    (780) 413-8187
    (780) 426-2716 (FAX)
    penny@mindoro.com
    www.mindoro.com
    or
    Ascenta Capital Partners Inc.
    Marshall Farris
    Investor Relations
    (604) 628-5800 or Toll Free: 1-866-684-4209 ext. 22
    info@mindoro.com